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Toyota-Shi Toyota-Shi means Toyota City. This is near Nagoya, and is the home of the world’s most revolutionary automotive company.

Toyota-Shi means Toyota City.

This is near Nagoya, and is the home of the world’s most revolutionary automotive company.

Why is locale important? All suppliers to Toyota Motor Works are located close to Toyota-Shi. Excellent relationships with suppliers were vital to what emerged from Toyota-Shi.

All suppliers to Toyota Motor Works are located close to Toyota-Shi.

Excellent relationships with suppliers were vital to what emerged from Toyota-Shi.

Kiirchiro Toyoda Son of Sakichi Toyoda, a famous Japanese inventor In 1935 he compared automobile assembly to that of American supermarkets An idea was born FACTOID: Toyoda is deemed unlucky when written in Japanese. So Toyota was used instead!

Son of Sakichi Toyoda, a famous Japanese inventor

In 1935 he compared automobile assembly to that of American supermarkets

An idea was born

The Traditional Way… Before Toyoda, assembly lines involved lots of stock being moved about It was costly and needed great coordination between stages

Before Toyoda, assembly lines involved lots of stock being moved about

It was costly and needed great coordination between stages

Taiichi Ohno After Toyoda’s death it was this engineer and teacher who turned dreams into a reality. Unusual for a Japanese, he is something of a rebel. It was Ohno who brought all the elements together to form the Toyota Production System.

After Toyoda’s death it was this engineer and teacher who turned dreams into a reality.

Unusual for a Japanese, he is something of a rebel.

It was Ohno who brought all the elements together to form the Toyota Production System.

Toyota Production System The three central elements to this revolutionary system were: Just-in-time Kanban Jidoka

The three central elements to this revolutionary system were:

Just-in-time

Kanban

Jidoka

Just-in-time Aims for zero inventory Parts are not kept in warehouse Parts arrive when needed It took 50 years to perfect the process!

Aims for zero inventory

Parts are not kept in warehouse

Parts arrive when needed

It took 50 years to perfect the process!

Think… What are the benefits of Just-in-time? What are the costs of Just-in-time?

What are the benefits of Just-in-time?

What are the costs of Just-in-time?

Kanban Is a coloured paper card that travels the production line with the actual parts. Information includes: Where parts should go How many there are What time they must arrive at next destination KANBAN: A card which acts as a signal to move or provide resources in a factory

Is a coloured paper card that

travels the production line

with the actual parts.

Information includes:

Where parts should go

How many there are

What time they must arrive at next destination

Kanban scheduling systems operate like supermarkets. A small stock of every item sits in a dedicated location with a fixed space allocation. Customers come to the store and visually select items. An electronic signal goes to the supermarket's regional warehouse detailing which items have sold. The warehouse prepares a (usually) daily replenishment of the exact items sold. In modern supermarkets Kanban signals come from checkout scanners. They travel electronically (usually once a day) to the warehouse. Smaller stores still use visual systems. Here, a clerk walks the aisles daily. From empty spaces he deduces what sold and orders replacements.

Kanban scheduling systems operate like supermarkets. A small stock of every item sits in a dedicated location with a fixed space allocation. Customers come to the store and visually select items. An electronic signal goes to the supermarket's regional warehouse detailing which items have sold. The warehouse prepares a (usually) daily replenishment of the exact items sold.

In modern supermarkets Kanban signals come from checkout scanners. They travel electronically (usually once a day) to the warehouse. Smaller stores still use visual systems. Here, a clerk walks the aisles daily. From empty spaces he deduces what sold and orders replacements.

In the manufacturing kanban system overpage, a machine shop supplies components to final assembly. Assembly is a manual operation with little setup and produces in lot sizes of one, to customer requirements. Machining is more automated and has significant setup costs. Machining produces in batches to amortize the setup and sequence parts to minimize tool changes. A small quantity of each part is maintained at machining. By observing the quantities, the machinists know what products need to be made.

In the manufacturing kanban system overpage, a machine shop supplies components to final assembly. Assembly is a manual operation with little setup and produces in lot sizes of one, to customer requirements.

Machining is more automated and has significant setup costs. Machining produces in batches to amortize the setup and sequence parts to minimize tool changes.

A small quantity of each part is maintained at machining. By observing the quantities, the machinists know what products need to be made.

Jidoka Jidoka means automation . However it now means more than just that. Machines had sensors introduced to help identify faults in the production process. Workers are told to never trust a machine and use their own eyes if a problem develops. Jidoka also means a worker can stop the entire line if he or she feels there is something wrong.

Jidoka means automation . However it now means more than just that.

Machines had sensors introduced to help identify faults in the production process.

Workers are told to never trust a machine and use their own eyes if a problem develops.

Jidoka also means a worker can stop the entire line if he or she feels there is something wrong.

Quality Circles Toyota invented this group of workers who discuss ways to do their work better At Toyota, managers do 90% of the time what the quality circles tell them to do!

Toyota invented this group of workers who discuss ways to do their work better

At Toyota, managers do 90% of the time what the quality circles tell them to do!

Finally… These processes have helped shaped modern industry. Lean production has been referred to as: “The machine that changed the world”

These processes have helped shaped modern industry.

Lean production has been referred to as: “The machine that changed the world”